What is that fancy word all online marketers are talking about? According to MarketingSherpa, The definition of conversion is “The point at which a recipient of a marketing message performs a desired action.” Typically conversion is seen as a completed purchase. Though, for example in social media marketing, the conversion goal can be a like on a Facebook page. Simply put, conversion is simply getting someone to respond to your call-to-action. Ryan Lillis provides a good aggregation on what conversion means in different contexts:
|Site Type||Common Conversion and Aggregate Goals|
|E-Commerce – a site that sells things for users to purchase online.||
|Media/Content – a site focused on article or other content consumption.||
|Lead Generation – a site that acquires business through name capture.||
|Donation – a site aiming to collect donations.||
Generally, a good conversion rate is somewhere around 2% to 5%. A good conversion rate is not that unambiguous; it varies from merchant to merchant and from industry to industry segment. You might have read one of my earlier posts about the marketing affiliate, Kiosked. The conversion rates they are able to provide their customers with are over 5%. Not bad?
In the physical retail world, the conversions are totally on a different level. Think about a visit to a grocery store: You have seen an effort when you have been driving there, trying to find a parking spot, maybe picked up your friend and paid for gasoline. Perhaps you don’t wanna see the effort again by changing the retail store and you don’t wanna leave empty-handed either. In the offline environment, the customer’s “switching costs” are higher, either in time, money or effort. When online, changing the retailer is just a click away and that’s why, online merchants have to pay attention on their conversion rates.
Sources http://sherpablog.marketingsherpa.com/marketing/conversion-defined/ http://meclabs.com/training/publications/browse-by-publication-type/handbooks http://blog.optimizely.com/2013/01/16/what-is-a-conversion/ http://www.wordstream.com/blog/ws/2014/03/17/what-is-a-good-conversion-rate#what-is-a-good-conversion-rate http://www.wordstream.com/blog/ws/2014/03/17/what-is-a-good-conversion-rate#